tv With All Due Respect Bloomberg February 9, 2016 8:00pm-9:01pm EST
she is changing that soon. betting most of its top trays for the year. do follow me on twitter. we do not have any trading because it is a lunar holiday. singapore, malaysia just coming online. good morning. it certainly has not been a great start. the markets have been opened. japan and australia are seeing a little bit of gains coming into trade. they are up by half a percent. they are giving back all of what they gained in the last session. down by 2.9%. theselay catch up to widespread selloff. japan expanding those losses from yesterday.
they were down more than five yesterday. the yen continues to strengthen. is poised to enter bear market territory. weakness coming through from the mining players and all of -- and also from tech shops. japan is down 1%. it is a attempted recovery coming through from the dow jones index. pretty flat movement coming through on the s&p 500. essentially, that rally that happened in last couple hours -- save stocks from going into deposit -- positive territory. we have a public holiday in japan tomorrow.
we see quite a lot of strengthening coming through. up there, against half of 1% against the dollar. it is certainly very big movement. investors bail into safe haven essence -- assets and out of equity. thank you very much. we are going to go to the new hampshire polls. they're just closing. let us get over to manchester. craig is standing by. greg: right now we have some results. a lot of the television networks here are declaring donald the winner of the unit -- new hampshire primary. bernie sanders is a winner of the democratic primary. it to be a resounding win.
haley clinton put up this memo. it is titled don't panic. does night here in new hampshire, on where we are much more suited to win. a pretty embarrassing that for hillary clinton. reporter: it is about minimizing the fee. it was always suspected that she would lose. craig: that's correct, bernie sanders has been leading in polls for month. she was secretary say, first lady, u.s. senator. this is the guy, 74-year-old democratic socialists from a neighboring state. voters are pretty angry about the system. they are feeling that the wealthy are getting the benefit and the little guys not. hillary was not able to turn around that part of bernie's message. on we go to the remaining contest. it will be interesting
to see how marco rubio does. given the missteps he had in a debate. craig: that's right. really the key story tonight is who comes into second place. if three or four folks vying for that. including marco rubio. a lot of people thought that he would consolidate his gangs -- gains. yet jeb bush, john kasich. all of them angling around the number two spot. that is going to prolong both these contests into the spring. just getting started in these races. or.rter: thank you so much we will give you the results coming of the first primary. lendergest retail reporting a slightly better cash profit. let us get sydney. the headline looks good.
it looks good on the surface. run through the numbers please. sydney: the cash profit of 4% to -- 420tralian dollars billion australia dollars. , a dividend remains the same dollar 98. -- 198. were some analysts who felt that that might increase a little. the banks are continuing to raise capital. there are up 100 basis points to 10.2%. take a look at the stock, it is up 1.1% right now. it is down from 4% gains earlier in the day. the commonwealth bank does make up 9% of the asa.
they ss -- would be doing without the result. they are down one and a quarter percent. reporter: thanks for much. let's have another look at other stories. including, sharp is still trying to make a decision. the plan of japanese fund to buy out sharp. could include an injection of two and a half billion dollars into sharp. including toshibas unit. inc. j has put together a package worth a $.5 billion. it is competing against taiwan lost foxconn group which is
trying to buy it out for $6 million -- $6 billion. the decision will be made at the end of the month. it is just six months from 2016. goldman sachs trays have fallen. -- traits have fallen. of sixve abandoned five recommended top trays for the year. one of the top trades it is walking away from his canon bond yields. goldman has been forced out of three of its topics within the first three months. of 48r on the basket non-commodity exporting companies. disney's helps propel first quarter higher. they lifted studio earnings by 60%. earning a billion dollars. revenue rose 14%.
but it seems that shareholders are more focused on the espn sports network. the sports programming fell. yesterday in an abc slid 6%. if espn tried to see can stem losses. we're looking at white china is betting on british tech startups it. on the program, could japan be headed for a recession? we're talking about negative rates. writing the way. investors can manage the highs and lows of what promises to be a volatile year.
>> double light of the thumb. it is one of the most exciting things we have made. it has been conceived in 10 years. ofre are 12 man years welding. it is a massive race to get it done. >> i think conrad is a leader of da vinci of our time. we were originally married to each other. there was a. of separation.
reporter: these are the scenes of the moment. democratic headquarters in new hampshire. we have the primary taken place where heavily cuts in could see the defeat to bernie sanders. what is perceived to be the front runner was defeated. republican domination coming from new hampshire, donald trump was well ahead in the polls. were concentrating on who is going to come second. this is the first in the nation's primary. of course narrowly losing out in iowa. let's get back to market action. it is a volatile year in global equity markets. it could end up in that terrain.
let's discuss what the rest of your holds for us. he joins us at nine. monthly is in singapore. there is a lot of concerns out there. a small factore that has come together. we've been here before. that is really the some of the things we are looking at. driven, sentiment driven. now that by itself is not enough to say that markets are bottoming. but it exposes a lot of the weaknesses behind it. it comes back to one big thing. we still do not think that the u.s. recession is a done deal. should still start looking out therefore opportunities even
if we are not jumping in with both hands just yet. europe and looking at china. and look at the weakness there. and the jobs report on friday is now on the u.s.. what is next for the economy? reporter: that is the single most important thing to look at. we know oil is a concern, china is a concern. interest rates are concerned. but the big one is the u.s. cycle. the u.s. cycle has further to go. returnuity markets could -- end up delivering cost of return. a've seen this complete with rare market in the late 1990's. we do have very sing -- similar parallels in history. if the u.s. market does not deliver, we expect that to be the real risk. when you look at economic data in the u.s., we are not seeing things that bad. there will be volatility but
we're not willing to throw in the towel. it is about having a strategy that manages volatility. reporter: do you think that the data is no means showing a complete picture of the u.s. economy? maybe the december interest rate hike should not have happened is mark ? reporter: it is true. there are signs of relative weakness. there is a low growth not negative growth. warnings, there has been quite a lot of weakness. we should see that weakness begin to reflect and the job market in the yield curve. in the services sector. it is just not as widespread. it does not mean that we cannot have a low growth outcome. that is not possible. it does depend a lot on what oil
prices do. if you look at the inflation rate, oil has been falling. it is still falling. coal inflation does not look so poor. land inflation rates do not look so bad either. with the bounce all those factors. is a much more balanced decision. the feds are trying to tell us that. reporter: the thing is, apache data, apachey economy. how do we manage volatility? reporter: i think finding a way to manage volatility will be important. it is about having that equity exposure on one hand. , the first month of this year told us exactly
what the best as it classes are. government bonds, asset classes like gold. alternative strategies like macro strategies. occurrences, interest rates. to managehe best ones volatility. diversification is important this year. this year it might really matter especially in the first and second month of this year. it has the measured how much is matters. reporter: it is the mantra that everybody should follow. nobody should have on undiversified full of. you should include government bonds. yet some yields have been pulled down globally. have, it is funny to call this. u.s. strategy still looks like a height using bond in that contest. the interesting thing is that
the u.s. treasury and the jgb has relayed -- has remained stable. markets turn around, markets will stage a rally. some of it is going to hurt. but that is the whole point of having a barbell. to counter the opposing forces. i think there's still enough out there offering positive yields. invest in great corporate. they will give a higher yield. it gives you most of the effects of the risk management. that is another place to look. lastly it is about macro strategies. -- evenlow you to bigger macro trends. it is a combination of all those. a good place to be. alongside and equities allocation. reporter: great talking to you.
time now tim look at headlines making headlines around the world. reporter: the developer of departments in taiwan have been arrested. victims from the death has risen to 241. there's still about 100 people missing. 530 people were injured in the quake which measured 6.4 and brought down nine buildings. and more killed injured when two cranes -- two trains crashed in germany. they were 60 kilometers away from munich. investigators are investigating incident. they were scheduled to pass each other at a nearby station. the failsafe system was supposed to automatic we stopped the train.
-- officials in the u.s. saying that the satellite launch and -- from north korea has stabilized in orbit. ofstill not have a way transmitting data back to earth. a --ngton has restarted they have restarted a plutonium reactor. powered by over 2400 journalists and hundred 50 euros around the world. this is bloomberg news. reporter: coming up next frontier for automakers making inroads into india.
business. -- we're seeing a seventh straight day of decline. they tumbled 22% this month. saying that it is declining any size of buyback. they are reporting 700 and 5000 mercedes benz cars. cost about $384 million. cutting into profits that it announced last week. airbag recalls following the nine u.s. fatalities linked to to, devices. --res in tokyo and at to toccata lurching low. one of traders most important suppliers have forced the
carmaker into a weeklong shutdown. this could have a worse effect than the 20 11 quake and tsunami. toyota has in less short with steel. production needs to resume on figure 15. with the growth rate expected to overtake china, india is seeing the rise of more aspirational middle class. those you'll want to spend money on nice things which is luxury vehicles. the world's manufacturers have been pushing to the india's new rich. with $350,000 burning a hole in their pocket can buy this bmw. and tell their friends that this is not just any old bmw. it is a bmw i-8. this car and others like it at the 2016 auto expo are guaranteed to turn heads in a country where most vehicles are
priced in four figures. luxury car manufacturers are banking on the emerging new market. we have people who will want electric cars. i think that people will be able to afford it soon. the number of millionaires in india is expected to surge 65% by 2020 two more than 300,000. automakers are also working on bringing down the prices. folks writing, mercedes, allete have all worked in plans in india to become more competitive. because of the competition, they all get competitive prices. back five years, the prices are too high.
now they're better. they're more competitive pricing. this is audi's at the auto show. this is a typical street him him by. taking an expensive luxury vehicle on a spin on india's congested roads are a stern test of nerves. it might also require goldplated insurance policies. well price increases are hoping to put some fizz on coca-cola earnings. they came in better than the calculations done by those analysts. $1.4 billion. into -- coke has taken a tight rein on expenses. they have also overhauled its bottling system and have
donald trump and bernie sanders have a sweeping victory in new hampshire. rashard: in a crowded republican field, the final finishing order yet to be set. bernie sanders is a clear victory over hillary clinton. it will be a long and competitive fight. it was better than expected. banks have reported that global
challenges, but liquidity is strong. six weeks into 2016. top traits of fallen victim to the volatility. markets andght -- bond markets as well. they are abandoning six recommendations in the year. is also walking away from italian bond yield. topics,his three of its they were outbid. opening in hong kong, shanghai. year a lunar near -- a new holiday. it seems to be going on. we are seeing markets that are trading and being heavily soloed. there fallen by 4/10 of 1%. almost down by 2.4%.
malaysia is weak at the moment down by what a third of a percent. we are still seeing the lunar new year making -- many that hong kong, china and other markets in the region are close first-rate day. they're still buffering a bit from the selloff that we have seen globally. lostive and have percent yesterday is down by 1%. there is a few winners, simcoe is one of them. in australia, of course it is the mining and technology shops coming under pressure. they are entering bear market territory as it closes. exasperating the losses at the midsession. i was so you some of the stocks that we have been watching in use of -- in japan.
nippon signal is actually keeping that loss. down by 20%. there, agl gains energy is pretty flat. investing into windfarms. bhp is also showing the fall that we are seeing in mining stocks. speaking of mining, we have seen oil price come back a little. to about $20. of 2% in asian trade. aboutrse it is all been the safe haven for gold. it is sexy climbed 12% so far. to his its best start trading year since 1980. the gold prices higher by a third 1%. reaching 1192. it is its longest rally in more than four years.
let's have a quick look at what is going on. nowe engle's is with me looking at the luster on gold. is a coming off? reporter: we're just eight shy of the 12 year cycle. right.r: that's this is the biggest rally we have seen since 1980. you're saying that is creeping back up towards that. but the seasonal chinese demand is often times feeling this ride. there is a lot of buying of jewelry. -- ininese buying of january makes up about a quarter of jewelry purchases in january. then it falls off the cliff. demand dries up. until you had the indian wedding season. i want to bring up the
austrian list of gold producers, surging to its highest since may 20 13. a little bit lower this morning. one of the big constituents there, opened up at 5% today. this is the rise that is correlating with the rising gold prices as a safe haven bed. with all the volatility in gold markets. you crest mining is up 28%. -- 24%. decade, let's bring up the chart of gold prices. over the past decade, the biggest gains were in january ahead of the chinese new year. and then they fell in march. this is gold in 2015. you can see the big spike in january. this is a very similar chart we see each year over the last 10 years. big surge in january, drop off in march. reporter: is this a guide for what happens this year reporter:
well that's what a lot of people say. rashard: have they canceled five of the trades. reporter: they say that gold will drop. they have had a annual drop. they will finish the year around $1000 or just below. that would be a fourth straight year of decline. 's action, with the fed with at least three rate hikes this year, markets have been improving across the year. however you can take all bits off if the fed -- if the u.s. economy does not recover. then we can see a very interesting year on gold that's. -- gold that's. aside -- -- rashard: asahi looking to expand.
they are rising 4.1%. aside he says that it may bid for perrone. oklahoma has resigned. seo --toshio of claimed that the falsified data was not a cover-up. they did not try to hide the defect in the building. aside he left -- lost more than 5% on the news. a loss of a 1.6%. salty, sweet menu items like this chocolate potato fries. is part of japan's -- japan china -- mcdonnell japan's turnaround. out and cutclose
jobs after safeties gambles including foreign objects found in food. >> we believe that we have made good progress rebuilding our foundation, our customers are noticing and they are responding. and 2016 is to build on this foundation, accelerate our recovery and complete our business turnaround. the yang continues to trade near its strongest that we've seen in a year. let us get to eugene macklemore nakamura.e monday, markets and hr mostly monday was ok. yesterday we came in selling big. byterday move was really led concerns about deutsche bank.
that weighed on japanese investors. mr. b she industries down. it is wiped out more than $30 billion in value. that was a big move for financial firms. the yen broke through 116 per dollar. that was a very strong support level. it held in january, now a broke through the 116 level. at 114. trip -- trading it is very bad for japan. exporters are getting killed. today market continues to fall. it is really, yesterday's move was triggered by concerns about deutsche bank and european lenders. some of the yanis playing into it. obviously falling oil is not helping either. overall, japan is really being led lower by banks. keep in mind that the bank of
japan is introducing native interest rates is bad for lenders. it was squeezed the profitability of how much they can make from their loans. also how much they make an investment on securities. are investors giving up ? or are there bargains to be found here and there? some of the banks that i mentioned are trading at very cheap valuations. eventually people come back in. -- now, does not see that seem that anyone is coming in. investors are not piling into high dividend stocks. it is really too early to say that people are nibbling at the edges. hopeful, it isng really out of japan's hands out. they kept done what they can.
the bank of japan, introduce negative interest rates. that hasn't helped. as a matter fact, the topics are now down below the level when the bank of japan eased in october 2014. it has erased all the gain since then. japan is done what it can. now it is out of his hands. investors are looking at what happens the oil next. you're seeing some hopes of optimism. you're seeing saudi arabia engaging in dialogue. if they decide to cut back on supply, oil prices were should back up. stock prices will shoe back up as well. also china is down this week for holidays. nobody knows what will happen to the currency when open six week. but given my that chinese stocks were up less week. so maybe they're planning a floor there. it is not really clear. will find a more next week when it comes that cup. yellently, we have
testify tonight. it is unlikely she'll say so now hurt the market. to probably say something to provide some confidence. we'll probably see some support coming from testimony tonight. but it is out of japan's hands for now. the bank of japan is him again. for stock investors, it is not a very good time. rashard: thank you very much. with the chinese or the lono new year -- lunar new year has provided chances for millions of people to travel. making a trip to japan more affordable and attractive for chinese people. how long will that last? is the yen rally really causing them is damage? reporter: it is certainly make it much more expensive. for budget travelers who can get
increasef by a one-2% in price. can see here, the tourist flow into japan has really taken off. aat i have here is four-five-year chart of the number of monthly inbound tourists according to government data. why do have for years, this and captures the weakness and the japanese yen sense abenomics started in late 2012. these measures are worth one point seven. 1.8 million tourists every civil month. we come from a base of 400,000. because of the weaker to currency. it's very interesting is talk about this at the moment. a lot of this has to do with the japanese yen. an edition this very quickly. look at this, this shows you
that the japanese yen has is stillally weaker -- substantially weaker than any other currency in asia. it is cheaper to go japan. think you see or more of your friends post pictures of themselves gobbling down a bowl of rom and in tokyo. it is cheaper to do so. are'm sure the streets jampacked. with taurus. -- with taurus. tourists. i was sure you have this is all change with in the over the last few weeks. the japanese yen has gained in with every single currency.
what is ironic now is all these trips during lunar year has already been booked. travelasily, the cost of would've been more expensive. for budget conscious travelers look elsewhere. the reason why this is important is because as the yen continues to strengthen, the trend that we saw in tour is coming into japan, could easily reverse itself. because of the sharp drop that we see in the yen. about an hour back, options, you look at the bullish bets on the .apanese yen they are at a five-year high. i'm seeing forecast right now of about 110 may be one of five. that is a bit extreme but realistic given the move we've seen on 120 to 114 in a matter of days. back to you. rashard: moore japan after the
♪ hong kong police it at almost 90 officers were injured in writing over the year -- over the new year. they have been the long caulk district of kowloon. officers fired to warning shots and arrested more than 60 people. commissioner had defended police actions promising enforcements against any illegal act. the u.s. supreme court has blocked federal regulations to
cut down power plant emissions. from power companies, -- the full legal challenges to go ahead. is -- it is casting doubt on the president's plan. to celebrate the broncos victory in super bowl pick the -- super bowl 50. the number was labeled 18 in honor of peyton manning. -- mvpe alongside and bp von miller. over 2400 journalists around the world. the yen is strengthening again. -- takingg its best
back almost all of its losses since we had the bank of japan surprise announcement on negative interest rates. let us discuss the importance of all this. i'm going to do this with nicholas smith. -- nicholas: it is a bit like a game of thrones red wedding over the last couple of weeks. it has been slaughter. yep to remind yourself this is japan. we've always seen worse. rashard: the thing is, what you are saying in your latest report is that even if we have yen weakness, it does not translate into good earnings. it is not a good -- strong correlation between earnings of corporate and the abenomics effect. itorter: short we had this -- enormous move from 700 to 25. -- i took 257 of the most
yen sensitive companies, i look broadly one yen per dollar moves to about 0.7%. others -- other areas of the economy, the weekend hurts them. weaken hurts him. it is much much smaller than what people think. the yen is correlating very tightly with the perception of risk in the epicenter of the earthquake. ontoime got offloaded european get -- european banks. use all distressed movements and the european corporate cds. with the yen. they are both moving up and down. this is a huge
misperception is what you are basically saying. exactly, over the 30 years i've been in japan, more often than not, strong yen has gone with strong corporate profits. -- we are at the opposite at the moment. it is important to understand. you know what to sell. when you get some strong again, you're thinking i ought to be dumping my exporters. but you should actually dumb things to do with risk. financialsthe because of the acts of the bank of japan. rashard: let's take a look at that. plus tie that in with what is going on with corporate japan. what is the value of the yen now? nicholas: i think at the moment you have a massive move. the yen is treated as a safe
haven asset. in a.ou are of distress, you will see some yen strength. but usually, there is an incredibly strong correlation between the trade balance and the yen. is afore, what you get trait -- as the trade balance improves, the yen strengthens. -- we ought to move back into the 120 range as risk quake present abates. rashard: very quickly, the point is you mentioned safe haven. you actually have to pay for the purpose of using out. -- using now. true.er: that is we should shorten the japanese
activity in the day before the year. million users. that is an increase of 31% compared to lesser. 61.9 million posts. there is usually a surge in activity on social media around the lunar new year. it is popular to send what is called digital lucky money. that lucky money is a long-running tradition. it is lucky to give and receive packets. now it has moved on to an online platform. people are also sending digital red packets. which are being promoted by social media. helps push people towards online payments. they can start buying things as well online. rashard: virtual currency. it disappears into the
rishaad: it is wednesday, and this is "trending business." this is a look at that we are watching. seeing australia facing a bear market. the rest of the world not too far behind. the bernie and donald show. the antiestablishment candidates triumph in new hampshire but the race is expected to stretch well into the u.s. spring.
claiming the bank laundered billions for the cartels and should be considered responsible for u.s. citizens they murdered. this is my handle -- @rishaadtv. we have, of course, the lunar new year. shockedhong kong both -- both shut. markets -- >> we are now seeing the nikkei 225 down by nearly 2%. closes at these levels, or even if it closes down by 1%, we are going to see the asx 200 down more than 20% from april 27 of last year.